Research On Financial Risk Analysis And Control Strategy Of WXCM Mergering Blue Lion

At present,the traditional publishing industry is facing a transition,digital publishing will become the orientation of traditional publishing development.Mergers,as an important measure of development,have become increasingly crucial towards publishing enterprises during the process of their active exploration for a developing path.However,the M&a market in China,while still within its primary stage,is characterised as late start,limited quantity and small amount.Although the publishing enterprises are still profitable,but the publishing industry is weak on its own accumulation.Due to lack of experiences and for want of financing channels,enterprise mergers can be great financial risks.Moreover,most of the current existing publishing and media industry mergers happens without much awareness of mergers and acquisitions.With the emergence of cross-industry,cross-regional,cross-country publishing and media industry mergers and acquisitions,mergers and acquisitions integration will become a must-have operating capacity for publishing media companies.WXCM is a typical traditional publishing company,while the Blue Lion is a representative of the new digital media business,the merger between them is the embodyment of traditional publishing companies actively embracing the new media.Based on the above reasons,this paper makes a research on the financial risks of WXCM mergering Blue Lion.The first chapter is the introduction,mainly discusses the relative background and subject-choice basis of the financial risk research on merger and acquisition;give an retrospection and summary of domestic and foreign scholars' studies on financial risk;and introduce the main research ideas and research methods.By conbining WXCM's real case research with case study,standard research and other methods,this paper summarizes financial-risk-related theories during a M&a,analyzes the present situations and financial risks involved in the merging of pulishing industry,and gives some corresponding solutions and advises.The second chapter is the research foundation of this paper,which introduces the theory of enterprise merger and acquisition and financial risk.The third chapter gives an introduction on the background of this M&A case.Since this merger case is closely related to the development of the whole industry,this paper analyzes the reasons for the merger and acquisition of M&A on the base of current industry situation,and analyzes the motives of the two counterparts involved in this merger.The fourth chapter is the main analysis part in this paper,Base on actual operation of the Blue Lion and WXCM and their disclosured related annual information,through charts and formulations,financial risk in this merger and acquisitions are analyzed,including the pre merger integration valuation risk,financing and payment risks in the process of merging and acquisitions risks after the merge.The fifth chapter conbines China's current publishing developing trend with the financial risks discussed in the forth chapter,and proposes some control methods and advises.Finally,the research conclusion is summarized,and the significance of the research as well as the shortcomings of the research are briefly explained.China publishing industry from the traditional to the modern transformation and upgrading of digital publishing is a gradual process,more and more enterprises tend to adopt the way of mergers and acquisitions gradually adapt to the integration of traditional media and new media development.Can effectively control the financial risk in mergers and acquisitions is the key to the success of the merger,therefore,this paper studies on the WXCM acquisition of blue lion financial risk analysis and control strategy have has important significance to research the financial risk of enterprise development and the transformation of Chinese China publishing industry.